Rupee to stabilise very soon: Official
Kolkata, Aug 18 : The Indian rupee, which has been depreciating against the dollar on account of external factors, will "stabilise" soon with the fundamental equation for trade unchanged, an official said here on Saturday.
"This breaching of 70 (mark) was on account of external factors largely on what happened in Turkey. Our fundamental equation for the trade has not been changed. Oil prices have not gone up.
"The demand-supply situation for dollars in the Indian economy has not got altered... our perception is that very soon it (rupee) will stabilise and it might go back to Rs 68-69," Union Finance Ministry's Department of Economic Affairs Secretary Subhas Chandra Garg said here.
On Thursday, the rupee had touched an all time low of 70.39-40 in the spot market and settled at a record closing low of 70.16 against the greenback.
Speaking on capital outflow, Garg said: "There was an outflow of $9 billion in terms of portfolio investments in the first three months of the current fiscal and last year, we had a inflow of $20 billion. But in July, there was no outflow. In August, there is positive inflow of about $1.5 billion."
"It makes it clear that the episode arising out of Turkey essentially does not alter FPIs' (Foreign Portfolio Investors) perception about the investability of India. I do not think that will change," he said on the sidelines of a Merchants' Chamber of Commerce and Industry's event.
Garg also said that public sector banks, which are under Prompt Corrective Actions (PCA) imposed by the Reserve Bank of India, would do better going forward and there would be lesser requirement for provisioning of bad loans.
"Profitability of these banks will be coming back. They are expected to come out of PCA in the next 1-2 years," he added.
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Cong performed better in Kerala, anti-incumbency trends influenced WB, TN: CM Siddaramaiah
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Monday said the Congress had largely met or exceeded expectations in several States, even as results in some regions reflected shifting voter sentiments.
Speaking to reporters in Bengaluru, he said the party accepted the mandate in Assam while performing better than anticipated in Kerala.
He also pointed to possible anti-incumbency trends influencing outcomes in West Bengal and Tamil Nadu.
“In Assam, we got the expected result, and we accept the people’s mandate. In Kerala, we have won more seats than expected. We anticipated around 76 to 80, but we have gone up to around 95,” Siddaramaiah said.
In West Bengal and Tamil Nadu, there may have been an anti-incumbency trend, and that could have influenced the results, he added.
Siddaramaiah also extended his congratulations to a new political entrant in Tamil Nadu, noting the emergence of a different electoral dynamic in the State.
“I congratulate the new entrant who has achieved success there,” he added.
Deputy Chief Minister D K Shivakumar said electoral outcomes in some States had diverged from the party’s internal assessments, reflecting evolving voter expectations.
“We expected a certain trend, but the results have been different. Political reading was wrong in some places,” he said.
“People were looking for change in some States, and that has been reflected in the results,” Shivakumar, who is also the Congress Karnataka unit president, said.
Referring to Kerala, he said the Congress-led alliance had benefited from public sentiment.
“There was already an expectation based on local body elections, and people had shown confidence in us. That has translated into a strong result,” the Deputy Chief Minister said.
On Tamil Nadu, he acknowledged that the scale of political shift had come as a surprise.
“We expected to secure around 30 to 40 per cent of the vote share, but such a major shift was not anticipated. It shows that voter expectations were different,” he said.
Shivakumar added that electoral outcomes underscored the need for better political assessment in future.
“We have to understand these changes carefully. Political reading cannot go wrong like this,” he said.
